Monday, September 29, 2014

About 30,000 Arizona smokers who bought cigarettes online are being
hit with bills for thousands of dollars in unpaid state taxes.
The
Arizona Department of Revenue says smokers owe the state more than $20
for each carton they purchased after 2006 through online companies that
offered discounts by sidestepping state use and luxury taxes.
Smokers
who thought they had saved more half off the retail price of cigarettes
are receiving letters from the state demanding immediate payment for
the unpaid taxes, plus penalties and interest.
Annette Borden of Chandler got a $4,299.20 payment demand last week for cigarettes she purchased online between 2007 and 2009.[...]In 2012, federal law made online cigarette sales illegal. Companies were
forced to give customer lists and purchase data to the U.S. Bureau of
Alcohol, Tobacco, Firearms and Explosives, which distributed it to
states.